JUNE 2018 VOL. 55, ISSUE 6
THE AUTHORITY ON GLOBAL BUSINESS IN JAPAN
The Art of Place-making Gordon Hatton: Creating cities for the future
毎月一日発行 第五十五巻 6 号 ジャーナル 二〇一八年六月一日発行
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CONTENTS VOL. 55, ISSUE 6
COVER PHOTO Pembroke Real Estate Japan Vice President Gordon Hatton in front of Tri-Seven Roppongi IMAGE: ANTONY TRAN / LIFE14
– Page 19 THIS PAGE Mori Building Digital Art Museum: Epson teamLab Borderless PHOTO: TEAMLAB
– Page 20
5 EDITOR’S DESK
15 ADVOCACY
20 REAL ESTATE
42 HEALTH
Future Fit
Sustainable Healthcare
Digital Domain
Mindful Care
C Bryan Jones
2018 initiative for a better future
Mori and teamLab see boundless future for Tokyo
Changing the perception of mental health in Japan
C Bryan Jones
Maxine Cheyney
7 PRESIDENT Report from Washington Furthering dialogue through annual DC Doorknock
Sachin N. Shah
8 EVENTS ACCJ in Pictures
11 ACCJ EVENT The Digital Health Revolution Is Japan ready for nextgeneration care?
Megan Casson
13 ACCJ EVENT Vaccines for Adults Japan perspective on prevention policy
Alec Jordan
The ACCJ Healthcare Committee
17 KANSAI
26 CONSULTANCY
47 J-MEDIA
Brand Myself
Second Jobs
Diet Dailies
Past ACCJ leader returns with career advice
Solution to staff shortage or threat to work–life balance?
Jiri M. Mestecky
Julian Ryall
First demand surplus in nine years boosts Abenomics Port facilities to benefit from fishing tourism
19 ACCJ LEADER
32 PARTNER CONTENT
The Art of Place-making
Flextime
Creating cities for the future
Kicking Japan’s inefficient work habits
Gordon Hatton
Nikkei Asian Review
36 REAL ESTATE
translation of news from Keizaikai
48 RI AWARDS Excellence in Recruiting Awards recognize industry’s best
Alec Jordan
Buyer Beware Why Japanese investors and expats mostly choose Manila
Brandi Goode DISCLAIMER Custom Media and the ACCJ will not accept liability for any damages caused by the contents of The ACCJ Journal, including, but not limited to, any omissions, errors, facts or false statements. Opinions or advice expressed in the The ACCJ Journal are not necessarily those of the ACCJ or Custom Media.
Publisher Simon Farrell simon@custom-media.com
Account Managers
HONORARY PRESIDENT
James Krick
William F. Hagerty IV United States Ambassador to Japan
President Robert Heldt
Business Development Directors
PRESIDENT
Anthony Head
Editor-in-Chief Christopher Bryan Jones
Leon van Houwelingen
Sachin N. Shah MetLife Insurance K.K.
Art Director Ximena Criales
Head of Project Management
Senior Graphic Designer Michael Pfeffer
Project Coordinators
Graphic Designer Alex Sanson
Yoshiki Tatezaki
Staff Writers Maxine Cheyney Alec Jordan Megan Casson Saya Hatton
Kiyoko Morita
Reiko Natsukawa
Kotaro Toda
Megumi Okazaki
Ayako Nakamura
Media Coordinator
CHAIRMAN
Christopher J. LaFleur McLarty Associates TREASURER
Nancy Ngou EY Japan VICE PRESIDENTS
Amy Jackson Pharmaceutical Research and Manufacturers of America (PhRMA) Peter M. Jennings Dow Chemical Japan Ltd. Marie Kissel Abbott Jonathan Kushner McDonald’s Company (Japan), Ltd. Ray Proper (Chubu) H&R Group K.K. Yoshitaka Sugihara Google G.K. Dr. Stephen A. Zurcher (Kansai) Kansai Gaidai University ACCJ GOVERNORS
Ryan Armstrong Aflac Life Insurance Japan Ltd. Eriko Asai GE Japan Alison Jane Espley United Airlines Brett C. Gerry Boeing Japan K.K. Rebecca K. Green ERM Japan Douglas L. Hymas The Bank of New York Mellon Tad Johnson Pratt & Whitney Aftermarket Japan KK Patrik Jonsson (Kansai) Eli Lilly Japan K.K. Arthur M. Mitchell White & Case LLP Jenifer Simms Rogers Asurion Japan Holdings G.K. Ryann Thomas PwC Tax Japan Megumi Tsukamoto Caterpillar Japan Ltd. Hiroshi Ueki Goldman Sachs Japan Co., Ltd. Michel Weenick (Chubu) Hilton Grand Vacations
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PRESIDENTS EMERITI
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The ACCJ is an independent membership organization not affiliated with any government or other chamber of commerce. The ACCJ is a member of the Asia-Pacific Council of American Chambers and values its relationships with Japanese, American and other nations’ business organizations.
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A positive and nurturing environment is critical to success, both in our busi ness and personal lives, and leading companies are hard at work on ways to improve our well-being. In this issue of The ACCJ Journal, we explore the trends that are shaping tomorrow with a focus on the health of mind, body, and the city in which we live. HEALTHY BODY One of the biggest challenges facing Japan is caring for an aging society. More than 28 percent of Japan’s population is aged 65 or older, and the strain placed on the nation’s healthcare system is growing. On page 11, we learn about advances in digital health that can help us stay fit longer and better manage treatment. And, on page 13, we find out why funding for vaccinations could be a key to managing future healthcare with fewer resources.
HEALTHY MIND Mental health is also an important issue in Japan—one that has long lived in the shadows. Societal taboos have stopped many from talking about and receiving treatment for problems; but that is changing. On page 42, we talk to clinical psychologist Andrew Grimes about the evolution of mental healthcare in Japan over the past three decades, as well as how he and his team assist young people affected by natural disaster. HEALTHY WORKFORCE Keeping the nation’s workers in prime condition is a top priority for the Japanese government, and different approaches to transforming decades of business tradition are being promoted. One initiative found in the government’s Action Plan for the Realization of Work Style Reform is the encouragement of second jobs and expertise sharing. On page 26, we talk to industry leaders about what this could mean for companies and workers, and whether the idea will bring growth or problems. HEALTHY CITY The place in which we live has a huge impact on our overall happiness and well-being.
EDITOR’S DESK
FUTURE FIT The most attractive cities offer not only an optimal business environment but also a cultural one. On page 20, we explore a new art collaboration designed to boost Tokyo’s standing in the annual Global Power City Index to attract more visitors and boost the economy—in digital fashion. We also learn on page 15 about the plans of the American Chamber of Commerce in Japan (ACCJ) Healthcare Committee to advance discussion of healthcare policy in 2018. The Sustainable Health & Retirement Initiative will develop a multi-stakeholder, proactive blueprint for the future sustainability of Japan’s social security system, and produce a health & retirement white paper and hold a summit in the fall. We delve into how it aligns with the ACCJ’s core advocacy goals. So, read on and stay healthy as we head into summer. n A flagship publication of the American Chamber of Commerce in Japan (ACCJ), The ACCJ Journal is a business magazine with a 55-year history.
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Report from Washington Further dialogue through annual DC Doorknock
PRESIDENT
By Sachin N. Shah ACCJ President
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ach year, leaders from the American Chamber of Commerce in Japan (ACCJ) travel to Washington for the DC Doorknock, one of our most important annual events and a key way in which the chamber works to ensure that the voices of ACCJ members doing business in Japan are heard by the US government. By meeting face-to-face with policymakers, we are able to share the ACCJ’s priorities with the color that only in-person meetings can provide and, in turn, understand the climate for the issues that matter to our members. This year’s DC Doorknock was held May 8–10 and included a delegation of 10 ACCJ members. In meetings with senior officials from the administration of US President Donald Trump and members of the US Congress, we emphasized the importance of the Japanese market to US businesses large and small, underscored the need for a constructive trade and economic dialogue between the United States and Japan, and called for more proactive private sector engagement. DIVERSE LEADERS This year, the delegation consisted largely of CEOs representing a cross-section of industries, including defense, financial services, healthcare, manufacturing, and travel. Engaging the leaders of our largest ACCJ member companies adds weight to the messages we take to Washington on behalf of all members. During the three-day visit, the ACCJ delegation met with representatives of:
National Security Council National Economic Council n Office of Trade and Manufacturing Policy n Office of the Vice President n Office of the United States Trade Representative n Departments of Commerce, Treasury, and State n Embassy of Japan in the United States of America n n
We met with more than 20 members of Congress from both political parties. I would like to once again extend my appreciation to US Ambassador to Japan William F. Hagerty and our partners at the Embassy of the United States, Tokyo, who provided candid
input during our planning process and—in many cases—enabled our access to key administration offices and leaders. One significant positive development is agreement by the US Department of the Treasury to further study our recommenda tions on taxation issues—including citizenship-based taxation and other matters—that place US citizens and companies abroad at a significant disadvantage. Under the leadership of the ACCJ Taxation Committee, and in partnership with the Asia–Pacific Council of American Chambers of Commerce, the ACCJ will continue to advocate on these issues and update members on our progress. EMBRACING CHANGE These meetings underscored the evolving nature of the US–Japan partnership, as well as the challenges and opportunities that we face as an organization in this changing environment. Our visit was also a meaningful opportunity to provide the many new people in various positions across the administration an on-the-ground perspective of the US–Japan economic relationship, and to emphasize the importance of the Japanese market for US companies. Our three days in Washington, DC reaffirmed our strategic priority to provide relevant and strong advocacy, and—given the evolving nature of the US–Japan economic and security relationship—the need to increase our presence both directly and indirectly in the Capitol. In our meetings, we also emphasized the need for an active, ongoing trade and economic dialogue between the United States and Japan that addresses outstanding trade issues in a way that is more forward looking and includes a strong private-sector voice. The newly announced dialogue between US Trade Representative Robert Lighthizer and Japanese Economic and Fiscal Policy Minister Toshimitsu Motegi represents a significant opportunity for progress. This is an important time for the ACCJ as we aim to play a constructive role in defining the next chapter of the US–Japan partnership and to enhance commercial opportunities for member companies in Japan. We will continue to update you as we move forward. As always, please get in touch with questions or comments at: sshah@accj.or.jp n
By meeting face-to-face with policymakers, we are able to share the ACCJ’s priorities with the color that only in-person meetings can provide
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1 Eikei Suzuki, governor of Mie Prefecture, talked about the results of the 2016 Iseshima G7 Summit at an ACCJ–Chubu special event on April 26 at Hilton Nagoya.
2 Einosuke Sumitani, chief executive officer of KCJ GROUP INC., took part in an interview facilitated by ACCJ–Kansai Business Programs Committee Co-Chair Hidehito Katsuma of Eli Lilly Japan K.K. at the ACCJ–Kansai event “My Leadership Story” at Knowledge Salon in Osaka on May 18.
3 Quiz game winner Yasuko Sugiyama, general manager of Oakwood Hotel and Apartments Shin-Osaka (center) with ACCJ–Kansai Membership Relations Committee Chair Ken Shimabuku (left) and ACCJ–Kansai Women in Business Committee Chair Mary Anne Jorgensen at the ACCJ–Kansai Spring Meet & Greet at The Garden Place Soshuen in Kobe on April 18.
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4 Ryohei Goto, partner at A.T. Kearney, spoke about the future of technology and wellness at the event “The Digital Health Revolution— Is Japan Ready?” (page 11) at Tokyo American Club on April 24.
5 Mari Nogami, executive officer and vice president of AstraZeneca K.K.’s Respiratory Business Unit, was the guest speaker for the event “Brand Myself: Self-Branding for Your Career” at AstraZeneca’s new office in Grand Front Osaka on April 10.
6 The third Bella Nova Night women’s networking event was held on April 19 at Misono Weekend BBQ in Nagoya and featured Dr. Tomoko Takayanagi, who shared her passion for promoting Japan’s service dogs.
ACCJ EVENTS
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7 The ACCJ–Chubu launched the first Young Professional Mentorship Series with Harry Hill, member of the board, New Business Development for Oak Lawn Marketing, Inc. (front center), on April 16 at Hilton Nagoya.
8 David E. Bloom, professor of economics and demography in the Department of Global Health and Population at Harvard T.H. Chan School of Public Health, spoke at the event “Understanding the Broad Societal Impact of Adult Vaccines and its Importance to Health Prevention Policy in Japan” (page 13) at Tokyo American Club on May 10.
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UPCOMING EVENTS
Please visit www.accj.or.jp for a complete list of upcoming ACCJ events or check our weekly e-newsletter, The ACCJ Insider. • JUNE 6
MetLife’s Global Open Innovation Platform: Partnering with Ventures • JUNE 21
Translating the Silicon Valley Startup Model to Japan SAVE THE DATE • SEP 13
2018 Kansai Women in Business Summit • DEC 8
ACCJ Charity Ball 2018 Nashville Nights facebook.com/The.ACCJ
twitter.com/AmChamJapan
youtube.com/user/AmChamJapan
linkedin.com/company/ american-chamber-of-commerce-in-japan
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ACCJ EVENT
The Digital Health Revolution Is Japan ready for next-generation care? By Megan Casson
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oday, people are spending more time looking at the world through their phones rather than their eyes. So, why shouldn’t healthcare become more digital, too? On April 24, Ryohei Goto, partner at US global management consulting company A.T. Kearney, spoke about Japan’s growing relationship with digital healthcare. At an event hosted by the American Chamber of Commerce in Japan Healthcare Committee and Digital Health Subcommittee at Tokyo American Club, he explored the impact digital health has on patients and medical professionals, and how the Japanese government might better finance these initiatives. While the concept of digital health may be new to many readers, interest is growing rapidly. Venture capital investment in health tech rose 59 percent from 2015 to 2016, and in 2017 more than 400 news items appeared on the industry-specific Nikkei Digital Health website while Google returned 7.7 million hits for searches for the term “digital health” in Japanese.
ADHERENCE Goto spoke about a variety of new digital health advancements. One is a recent partnership between Amazon.com Inc. and Merck & Co., Inc. to integrate Alexa virtual assistant technology into the treatment of diabetes. “It may sound like a small step in terms of the technological advancements, but, in terms of the influence on consumer behavior, it is a big change,” he said. “Instead of getting an alert from your mobile [device] or an alert from your nurses, you have [Alexa] speaking to you when you actually need to take your medicine.” Adherence is a big issue in Japan, said Goto, explaining that about 30 percent of people diagnosed with a lifestyle disease
stop taking their medication within six months. This obviously has an effect on the total lifetime cost of treating a patient. Bad adherence results in a 10–15-percent loss for the Japanese pharmaceutical industry. Digital health advancements— such as the Abilify MyCite system from Otsuka Pharmaceutical Co., Ltd. and Proteus Digital Health, which comprises a tablet with a digestible sensor, a wear able patch, and a smartphone app—are new and effective ways to monitor the intake of medicine. Doctors and selected family members can access the app to review adherence. THERAPY People receiving mental healthcare are the group most unsatisfied with their current drug-based treatment, and dementia and diabetes combined cost the Japanese healthcare system about ¥20 trillion per year. “Many mental health patients are still suffering from taking excessive amounts of drugs. They don’t want to take too many drugs because they don’t really see the benefit of it,” Goto said. “But having this mobile intervention does allow them to manage their conditions better without relying too much on drug therapy.” There are also applications such as Cure App, which supplies a cognitive behavioral therapy-based treatment through games and mental health counseling on a smartphone.
PREVENTION Goto also spoke about the preventative benefits of digital healthcare. Euglena Co., Ltd. provides a do-ityourself way for individuals to gain insight into their genes. The data obtained from a simple saliva sample taken at home and sent to a testing center can identify ancestry, disease risk factors, and predisposition for lifestyle diseases. “Based on the results of your gene testing, [Euglena] will help connect you with the right healthcare providers and physicians who can understand the risks and conditions, and have a more integrated and continual care catering to the specific needs that you may have,” Goto said. Preventative steps, such as this simple ¥20,000 test, can significantly reduce the cost of a person’s lifetime treatment. FUNDING Making healthcare more readily accessible through digital tools in Japan would seem logical, but many question the value and, hence, the funding. Japan’s total healthcare spending market is ¥88 trillion, with just ¥20 trillion of that potentially going toward digital, data, and information and communication technology. But Goto insists that the funding is available, and digital health will free up more funds for other medical needs. Japan has a major opportunity here, he said in closing. As one of the countries leading in medical innovation, the next step toward digitized healthcare would be to create a space to invest in more forward-thinking and economical ways of prevention, diagnosis, and treatment. n
Megan Casson is a writer at Custom Media, publisher of The ACCJ Journal
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ACCJ EVENT
Vaccines for Adults Japan perspective on prevention policy By Alec Jordan
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ince Edward Jenner first discovered a way to prevent smallpox in 1796, vaccines have played a key role in public health. The World Health Organization estimates that vaccines currently save 2.5 million lives each year. Despite this success, even more lives could be saved if greater value were placed on them when funding health policy. On May 10 at Tokyo American Club, the American Chamber of Commerce in Japan Healthcare Committee and Medical Devices and Diagnostics Subcommittee hosted an event in collaboration with the European Business Council in Japan. Two speakers—David E. Bloom, professor of economics and demography in the Department of Global Health and Population at Harvard T.H. Chan School of Public Health, and Manabu Akazawa, professor of public health and epidemiology at Meiji Pharmaceutical University— shared insight into the societal impact of vaccines and their importance for disease prevention policy in Japan. REAL IMPACT Bloom addressed the benefits of vaccination head-on. “Some times, in economics and social science, we identify interesting theoretical ideas that don’t really amount to much in the real world. I want you to see that this is not the case when it comes to vaccinations.” He explained that many economic studies indicate that the estimated return on investment (ROI) for education averages about 10 percent, and argued that vaccines could have even greater ROI. As a result of this high rate of return, investments in education have an exalted place as an instrument of economic growth and development. However, many studies of the social return on investment in vaccination reveal substantially higher rates of return. “The simple fact is that healthier populations perform better economically than their less healthy counterparts, so, by promoting health, vaccination confers substantial economic benefits on society,” Bloom added. However, Bloom acknowledged that vaccines have tended to be undervalued by economists and policymakers world wide, leading to underinvestment in vaccination programs and in the development of new vaccines. One danger of this is the development of disease strains with antimicrobial resistance (AMR), which some pundits have identified as an existential threat to humanity, alongside
climate change and nuclear proliferation. When vaccines are underutilized, preventable illnesses that are treated with anti biotics and other antimicrobials spread and can develop AMR. “I know that this is a major concern here in Japan. Pneumonia, for example, is the third leading cause of death and … [a] staggeringly high rate of almost 50 percent of Streptococcus pneumoniae is penicillin resistant at this point.” SETTING PRIORITIES Akazawa talked about the financial costs of elderly patients who suffer from pneumonia. “We estimate the cost of pneumonia for outpatient episodes at about $346 and inpatient at about $4,800.” The problem, Akazawa said, is that vaccines—particularly for the elderly—are simply not seen as a priority. “Of course the public benefit is huge, and the children’s vaccination rate is very high in Japan, but the vaccination rate for the elderly is very low because individual people do not think that it is really important.” Akazawa has been studying a program put into place by the Japanese government that provides flu vaccine subsidies for those aged 65 and older. The program began in 2014 and will run for five years. It has yet to be decided whether the program will continue beyond 2019. He believes that information-gathering regimes similar to those of the US Centers for Disease Control and Prevention can help the government make such decisions. THE FUTURE One law that could impact the situation went into effect in May. The Jisedai Iryo-kiban Ho—which can be translated as the “The Next-Generation Medical Infrastructure Law”—will allow anonymized Big Data from medical sources to be consolidated and utilized to study diseases and to develop new drugs. Akazawa sees the data that will become available as a result of this law as crucial to bolstering vaccination programs, saying, “The Japanese government needs to have more information to review the processes and also the benefits of the different kinds of programs.” Bloom thinks all eyes will be on Japan, because the country is at the forefront of a demographic change that is affecting many nations: an aging population. Decisions about vaccines for the elderly will play an important role. “Japan has great potential in exercising leadership in this arena through its decision-making processes, the decisions it makes, and the ensuing results in terms of population health and economic well-being.” n
Japan has great potential in exercising leadership in this arena THE ACCJ JOURNAL
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ADVOCACY
Sustainable Healthcare 2018 initiative for a better future By the ACCJ Healthcare Committee
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s American Chamber of Commerce in Japan (ACCJ) President Sachin N. Shah explained in our March issue, “The ACCJ will prioritize the following five cross-cutting advocacy themes aimed at ‘unlocking Japan’s growth potential’ while aligning with both the chamber’s mission and the policy agendas of the US and Japanese governments:
system through price cuts. A funda mental transformation is required. Only through such a transformation can Japan ensure the long-term sustainability of universal healthcare and become a model for other aging nations.
US–Japan Economic Partnership Digital Economy n Health and Retirement n Tourism, Sports, and Hospitality n Workforce Productivity n n
“By prioritizing these issues,” Shah said, “we aim to focus the chamber’s voice, foster more collaboration between committees, and promote US businesses as a source of global best practices.” One of the ACCJ’s key advocacy projects during 2018 focuses on the third of these— Health and Retirement—as the Healthcare Committee and its subcommittees work to align their advocacy agendas with the chamber’s overall advocacy framework. The Healthcare Committee strives to stimulate multi-stakeholder partnerships and discussions that will drive healthcare transformation by identifying practical, tangible actions and providing innovative solutions that address patient needs and ensure the sustainability of Japan’s healthcare system. Some 320 members comprise the Health care Committee and its subcommittees— Dietary Supplements, Digital Health, Medical Devices & Diagnostics, Pharmaceuticals, and Regenerative Medicines & Biosciences—and all seek to improve understanding of how innovative medicines and technologies can contribute to the Government of Japan’s vision for greater workforce productivity and economic growth through periodic breakfast and luncheon speaker events and other activities.
CHANGING SYSTEM There is much talk about the aging of society. People aged 65 and older make up 28.2 percent of Japan’s population and the ratio is projected to grow to 34.4 percent by 2038, according to the National Institute of Population and Social Security Research. This demo graphic shift will affect the country in many ways. When it comes to healthcare, the system will have to deliver more— and better—care with fewer resources. The 2018 pharmaceutical pricing reform was particularly harsh for innova tive manufacturers, with a significant reduction in scope of the Price Mainte nance Premium (PMP) and new rules to further cut prices. The three-year cap of a ¥1.5 trillion increase in social welfare spending put in place by the Japanese government in 2016 expires this year, and is expected to be newly addressed in the 2018 honebuto (Basic Policy on Economic and Fiscal Management and Reform). While such changes are an under standable reaction to the pressures being placed on society, the resources that will be required in the years to come cannot be squeezed out of the existing
ADVOCACY SOLUTION The Sustainable Health & Retirement Initiative will develop a multiplestakeholder, proactive blueprint for the future sustainability of Japan's social security system. The ACCJ recognizes that such a system requires innovation and action in multiple sectors, and that support from the Japanese government, employers, and related industries—including banking, insurance, pharmaceuticals, medical devices, and health IT—is critical. Two key deliverables will come out of the project:
Sustainable health & retirement white paper n Half-day sustainable health & retirement summit n
The framework and key talking points are being developed with an eye towards the second meeting of the F500 CEO Council. This will be the first opportunity to interact directly with senior business leaders and representatives of the Japanese government, and will help guide the drafting of the white paper, which ACCJ leaders will share with media and in a Diet Doorknock. The summit, featuring guest speakers and attendees from the government, will also take place this fall and will provide an in-depth examination of the issues facing Japan and the transformation needed to ensure a healthy future. n
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K ANSAI
Brand Myself Influential past ACCJ leader returns with career advice By Jiri M. Mestecky
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n April 10, the Kansai chapter of the American Chamber of Commerce in Japan (ACCJ) held an event featuring a presentation by Mari Nogami, executive officer and vice president of AstraZeneca K.K.’s Respiratory Business Unit, which is based in Osaka. The event was organized by the ACCJ–Kansai Business Programs Committee and was sponsored and hosted by AstraZeneca K.K., an ACCJ corporate sustaining member. Nogami made many contributions to the ACCJ–Kansai as the first chair of the ACCJ–Kansai Women in Business Committee, which was the first Women in Business Committee established in the entire ACCJ. She also served concur rently as vice president of P&G Japan and president of Max Factor Japan. This allowed her to set the stage for many of the novel initiatives and successes that the ACCJ–Kansai has implemented and enjoyed with respect to advancing the cause of women working in Japan. Nogami was also named ACCJ–Kansai Leader of the Year in 2011.
LIFE LESSONS In a presentation entitled, Brand Myself: Self-Branding for Your Career, Nogami spoke to a large crowd at AstraZeneca’s beautiful new office in Grand Front Osaka. The event was also attended by AstraZeneca K.K. Representative Director and President Stefan Woxström, the Sweden native who took over as head of Japan operations in January after serving as president of the Nordic Baltic region. Nogami recently returned from an extended period working in AstraZeneca’s Gothenberg, Sweden, facilities and had many useful insights and experiences to share. The focus of Nogami’s presentation was her personal and professional journey. She described how the skills she had honed over many years as a successful marketing executive in some of the world’s top corporations could be used for self-marketing, career advancement, and in more personal matters, such as marriage.
Nogami made many contributions to the ACCJ–Kansai as the first chair of the ACCJ–Kansai Women in Business Committee
She traced her life and career from childhood to present, providing many entertaining and instructive anecdotes about achieving professional and personal success in Japan and abroad. She also provided concrete examples and marketing strategies, such as identifying specific attributes to differentiate and enhance personal or corporate brands—something that helps individuals clarify their goals and present the best version of themselves. Nogami’s presentation was highly interactive, with a lively discussion during the Q&A followed by an active networking session. The evening was a great success; many new lessons were learned and old friends and colleagues reunited. The ACCJ–Kansai would like to extend our special thanks to Nogami and AstraZeneca K.K. for a fantastic presentation and wonderful hospitality. We are also grateful to the ACCJ–Kansai Business Programs Committee co-chairs, Mie Kitano and Hidehito Katsuma, for organizing this excellent event. n Jiri M. Mestecky is special advisor and ACCJ–Kansai Executive Committee member
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ACCJ LE ADER
The Art of Place-making Creating cities for the future
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s an architect and an urban real estate developer, how to create city spaces with a unique spirit of place is something I spend considerable time thinking about. In an age when we have a propensity for classifying, we speak of gateway cities, Tier-2 livable cities, smart cities, sustainable cities, innovation hubs, or centers of media concentration, and we look to studies such as the Global Power City Index (page 20) to understand, define, and rank their importance. While these evaluations do not specifically consider blockbuster events, such as the Tokyo 2020 Olympic and Paralympic Games, these milestones can signal the repositioning of a city’s image. Beyond this, however, the rankings increasingly assess how well cities of various scales deploy cultural elements to make themselves attractive and livable, as cities and regions compete for corporate investment and jobs. How can we build creative cities that are responsive to post-consumer society? What resonates with and attracts the creative class, a group that all cities desire as a way of bolstering their workforce and economic viability? As leaders in the real estate profession, we are tasked with identifying and bringing to fruition the necessary building blocks on which communities form. In addition to the obvious basics of food, water, safety, security, and shelter, a key determinant in the development of cities as we know them today is infrastructure—notably transportation and power. KEYS TO TOMORROW But what is the important infrastructure that defines potential for cities of the future? Large infrastructure projects remain essential and yet increasingly are not enough. Environment and lifestyle are highly scrutinized as successful cities look to facilitate cultural diversity and strive to
By Gordon Hatton, co-chair of the ACCJ Real Estate Committee and vice president/head of Japan at Pembroke Real Estate Inc.
distinguish themselves as vibrant, unique, and memorable. Soft content has become a keyword for many industries in recent years, and real estate is no exception. As it turns out, placemaking may be less about the formal plans we devise following master frameworks, guidelines, codes, best practices, etc., and more a result of facilitating a collaborative and accommodating communal interaction with end users. A creative or culture-rich city welcomes diversity and is tolerant of ambiguity. Some places convey a comfortable sense of be longing, deeply rooted in historical context. Others present a spontaneous and dynamic juxtaposition that stimulates intrigue, and our perception of place can change with time. CREATIVE RULES Roppongi Art Night—and the greater art scene surrounding it in the Roppongi Art Triangle district—is an interesting demonstration of this. During the 32hour non-stop event staged May 26–27,
the Roppongi community hosted a wide variety of art, including performances and installations across the entire district described by organizers as being set “amidst the headlights and neon that glow like a sleepless city.” While spontaneity plays a big part in what makes Art Night special, this is also an opportunity to consider numerous per manent installations and the relationship between art and architecture in a dynamic, internationally informed urban context. To be successful from a business perspec tive, a landmark real estate development goes far beyond the delivery of well-located, generously proportioned space over a back bone of leading-edge technology. God is in the details and occupiers are looking for an x factor when making their choice. A property that speaks to the core values of sustainability, social responsibility, teamwork, vitality, and work–life balance will effectively attract talent and optimum business performance. However, it is through intangible aspects, such as the integration of art—be it a per manent installation or a space to informally facilitate a diverse group of co-creators—that we raise the bar and define how a property attains a special fit within its context. In my case, the artists we affiliate with typically have a passion for process and craftsmanship, and this builds synergies with the architecture. It is not uncommon to leverage the connections our people have in one market to source art for a property in another global market. This adds tremendous complexity to developing bespoke works at times, and demands collaboration; but we hope that through the results this speaks to our international viewpoint and makes a meaningful contri bution to the community. n
How can we build creative cities that are responsive to post-consumer society?
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DIGITAL DOMAIN Mori and teamLab see boundless future for Tokyo By C Bryan Jones
We live in the era of global cities. More than ever before, people, goods, capital, and information are concentrated in metropolitan centers—a trend that will only grow in the coming decades. According to the 2018 Revision of World Urbanization Prospects by the United Nations (UN), 55 percent of the world’s population resides in urban areas, and this is expected to rise to 68 percent by 2050. In 1950, the number was just 30 percent. In Japan, 92 percent of the population lives in urban areas compared with 78 percent in 2000. This shift generates new business, values, and lifestyles that lead to further accumulation of power, and the planning and execution of infrastructure projects today is critical for prime positioning tomorrow. In their quest for greater influence, cities are focusing on development of their magnetism not only in terms of economic and financial strengths but also art and culture. In today’s world, comprehensive power is king and Tokyo is taking bold steps.
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POWER UP Each year, The Mori Memorial Foundation’s Institute for Urban Strategies undertakes an exhaustive assessment of the world’s major cities and ranks them according to six main functions:
Economy Research and development n Cultural interaction n Livability n Environment n Accessibility n n
Together with five actors—manager, researcher, artist, visitor, and resident—these six functions allow researchers to identify the strengths and weaknesses of each city. The results are published as The Global Power City Index (GPCI) and help those charged with strategy and policy to hone in on problems that must be overcome and more effectively craft an action plan. Tokyo, which the UN cites as the world’s largest city with 37 million people, ranks third in the most recent GPCI, published in October 2017, trailing second-place New York City and topranked London. It’s the second year in a row that Tokyo has held the third spot, stepping up in 2016 from fourth, a position it had occupied every year since the study was conceived in 2008.
REAL ESTATE
PHOTOS: MORI BUILDING DIGITAL ART MUSEUM: EPSON TEAMLAB BORDERLESS, 2018, TOKYO, JAPAN ©TEAMLAB
The Cultural Interaction function is an area in which Tokyo has steadily improved year after year and has helped close the gap on New York City. Ou Sugiyama of Mori Building Co., Ltd. told The ACCJ Journal that it “has become the key to enhancing Tokyo’s comprehensive power.” The Cultural Interaction function comprises five indicator groups: Trendsetting Potential n Cultural Resources n Facilities for Visitors n Attractiveness for Visitors n International Interaction n
Within these groups are 16 specific indicators that include Environment of Creative Activities and Number of Museums. Although Tokyo ranks fourth globally in Cultural Interaction, there remains much ground to gain to reach the top. The city’s 2017 GPCI score of 186.3 in this function is far behind third-place Paris (217.3), second-place New York City (233.1),
and first-place London (333.1). Compare this with much smaller gaps between Tokyo and New York City in Economy (294.3 and 323.2), research and development (162.9 and 183.7), and Accessibility (206.1 and 221.1). In an overall tight race, a surge in Cultural Interaction could push the Big Mikan ahead of the Big Apple. DIGITAL DESTINATION Mori Building aims to further boost Tokyo’s standing in the Cultural Interaction function through collaboration with teamLab, an art collective that describes itself as an interdisci plinary group of ultratechnologists. Founded in 2001 by a group of University of Tokyo postgraduates, teamLab brings together artists, programmers, engineers, CG animators, mathematicians, architects, and other specialists to navigate the confluence of art, science, technology, design, and the natural world. “Both Mori Building and teamLab have a common desire to increase the presence of Tokyo as a global city, and recognize Tokyo’s status in the world and the possibilities offered by
Mori Building Digital Art Museum: Epson teamLab Borderless OPENS JUNE 21, 2018 Odaiba palette town, 1-3-8 Aomi, Koto-ku, Tokyo | http://borderless.teamlab.art
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arts and technology,” Sugiyama said. “Mori Building is a company that creates and nurtures cities, and teamLab is a creative representative of Japan that continues to disseminate incredible artwork to the world. We found common ground, sharing the same goal to increase Tokyo’s magnetic power through art and culture towards 2020 and beyond.” The digital installations created by teamLab have amazed guests around the world at exhibitions in Australia, China, Finland, France, Italy, Singapore, Taiwan, Thailand, Turkey, the United Arab Emirates, the United Kingdom, and the United States. Although teamLab has some permanent installations in China, Italy, Singapore, Taiwan, the United Arab Emirates, and the United States, these have more often been limited-time experiences. The 10,000-square-meter (107,000-square-foot) Mori Building Digital Art Museum: Epson teamLab Borderless will provide a permanent home for some of the most popular installations seen abroad as well as for new works and interactive experiences. “We hope that this groundbreaking museum will inspire people to create enlightened new values and innovative new social frameworks and attract people from all over the world ahead of the Tokyo 2020 Olympic and Paralympic Games as a oneand-only destination,” said Sugiyama. NO BOUNDARIES As the Mori Building Digital Art Museum: Epson teamLab Borderless demonstrates, teamLab aims to explore a new relationship between humans and nature through art. Entering the museum truly is an immersive experience, as The ACCJ Journal learned while touring the still-under-construction facility in April. The world within the walls of this enormous space at Odaiba’s palette town entertainment and shopping complex is powered by 520 computers and 470 projectors.
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According to teamLab, digital technology has allowed creators to liberate art from the confinements of traditional, physical mediums and transcend boundaries. As they see it, everything exists in a long, fragile yet miraculous continuity of life. “The word ‘borderless’ expresses the museum’s aim to tear down the borders between one work of art and another, art and viewers, and oneself and others by allowing visitors to melt into the art and become part of it,” explained Sugiyama. This is well demonstrated in the installation Black Waves, a 360-degree simulation of water reminiscent of ukiyo-e in what teamLab calls ultra-subjective space. A guide from teamLab explained how, in pre-modern Japan, people saw the world from a different perspective. In their paintings, oceans and rivers were expressed as a series of lines. This is connected with how they saw themselves as part of nature rather than separate from it as we often do today.
REAL ESTATE
“When you look at Japanese picture scrolls and paper screen paintings, you realize that there is no fixed perspective—you just keep scrolling. The same thing happens here. You are always at the center of the artwork,” she said, surrounded by everchanging waves. No matter where one stands, the art can be seen freely. Boundless may also describe life in a city, where millions of people coexist and cross paths daily yet often remain strangers. As we walked through terraced rice fields—a sprawling installation of flat screens on stems upon which changing environments are projected—our teamLab guide explained: “If you come to this room and you become a trigger that causes a transformation, and if someone else occupying the same space finds that transformation beautiful, suddenly your presence becomes a positive experience for a stranger.” Another installation, Forest of Resonating Lamps—One Stroke, is a room filled with hundreds of lamps made of Venetian glass that seem to go on forever due to mirrored walls. It can be seen as a reflection of life in a metropolis such as Tokyo. “When you stand close to one of the lamps, it will react to your presence and shine brightly,” teamLab explained. “That light will be transmitted to the surrounding lamps and then throughout the room. It will go all the way around those hundreds of lamps in one stroke and eventually will come back to you.” If a light comes to you from the other side of the room, it means there is someone else there. In this way, people become aware of the presence of others. “This goes back to the concept of teamLab—trying to find a new relationship between people occupying the same space.” According to teamLab, the arrangement of the lamps and the dynamic way in which they are activated by other people demonstrates how a space can be designed freely, change itself through digital technology, and adapt and change due to the movement of the people in it. Much like a city.
Mori Building and teamLab hope that this unique museum will create new incentive for travelers to visit Tokyo.
INTERACTION The primary GPCI function being addressed by the Mori Building Digital Art Museum is Cultural Interaction, and it’s a term teamLab has taken to heart. The popular Sketch Aquarium, an interactive digital installation that has been part of teamLab Future Park around the world since 2013—permanent in some locations and temporary in others—will be part of the Mori Building Digital Art Museum. The attraction won the Grand Award for Technology at the DFA Design for Asia Awards in 2015. Children bring Sketch Aquarium to life by drawing their favorite fish or sea creature, which is then scanned and becomes part of the digital aquarium that covers one entire side of the room. The young artists can interact with their creations by touching the fish as they swim by. The fish react to the touch. The teamLab Athletics Forest will take this a step farther. This new creative space makes interaction more physical with Light Three-Dimensional Bouldering and Pyon Pyon Universe, both interactive digital installations that are new in 2018 and require full participation. In Light Three-Dimensional Bouldering, LED-powered gemstones light a path for the climber as they make their way through a three-dimensional space. The color of the
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Relocation in a digital age When life and technology blend seamlessly
Santa Fe Relocation T: (81-3) 3589 6666 E: Japan@santaferelo.com santaferelo.com
Economy 0
R&D 200
Livability 400
600
Environment 800
1,000
Accessibility 1,200
Cultural Interaction 1,400
1,600
1 LONDON 2 NEW YORK 3 TOKYO 4 PARIS
REAL ESTATE
Global Power City Index 2017 Comprehensive Ranking 1,800
1560.1 1386.3 1354.7 1289.7 SOURCE: GLOBAL POWER CITY INDEX 2017
path is determined by a badge worn by the climber, which interacts with the surrounding boulders to reveal a course. The result is artwork formed by the light pattern that is never repeated. Because the installation is constructed in real time by a computer program, the visitor—through the act of climbing— becomes an artist who creates a one-of-a-kind work. Pyon Pyon Universe is a flexible surface developed by teamLab, similar to a trampoline, on which stardust is projected. By sinking and jumping, visitors bring together dust to form stars and planets, climaxing in the creation of a black hole. ART ASSIST Just as those who leap into the digital stardust or climb through the LED footholds create spontaneous artwork through their presence and interaction, Mori Building and teamLab hope that this unique museum will create new incentive for travelers to visit Tokyo. Mori Building’s first major urban cultural development was the Suntory Hall in ARK Hills, which opened in 1986. This was followed by many others, including the Mori Art Museum at Roppongi Hills (2003) and the Kanze Noh Theater at Ginza Six (2017), a collaboration that brought the Kanze School back to the district it called home from 1633 to 1869. “We are very active in all aspects of urban development, in particular incorporating elements of art and culture in our projects and making art something everyone can enjoy in their daily lives,” said Sugiyama. “We wish to make Tokyo a magnetic city which attracts people from all over the world. To achieve this, elements that encourage people to experience art and culture are indispensable.”
In 2017, New York City welcomed 12.6 million global visitors, Paris received 12 million, and London saw 30.1 million—all of which are annual records. Japan also set a record in 2017 with 28.7 inbound tourists, and the Japanese government has set a target of 40 million annually by 2020. 2020 VISION There is much talk about what 2020 means for Tokyo. This includes the Tokyo 2020 Olympic and Paralympic Games and the Rugby World Cup 2019. Preparations for these events have seen improvements to infrastructure get underway, such as Tokyo Metro’s plans to have elevators and accessible toilets at all of its stations, plus multiple elevators at those nearest Paralympic venues. It’s the push the city needed to go barrier free, which will help not only athletes and visitors during the Games but also Tokyo’s aging population in the years following. Pairing such practical transformations with improved experiences for the mind is how the city can build the compre hensive power needed to rise in the GPCI. “With global attention increasingly focused on Tokyo, creating this one and only destination in this great city and attracting people from all over the world by disseminating the most advanced art, culture, and technology from Tokyo will enhance our strengths in Cultural Interaction,” said Sugiyama. “As artists representing Japan, teamLab has attracted a large number of people by offering works of art that far exceed common expectations. By collaborating with them and creating an unprecedented new destination for the world, we believe it will increase the magnetic power of Tokyo as a whole.” n
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SECOND JOBS Solution to staff shortage or threat to work–life balance? By Julian Ryall
In the space of a little more than a decade, Japanese attitudes and approaches to employment have under gone a seismic shift. Maybe not every business in the country has completely swept away all vestiges of traditional work style, but an increasing number are encouraging employees to work from home, limiting overtime hours, and introducing measures to help their personnel achieve better work–life balance. Women are increasingly seen in leadership roles previously limited to men. Time off for new parents— male and female—is becoming the norm. And some people are taking their full holiday entitlements.
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While these changes are being broadly welcomed, there is also recognition that more is needed, because Japan’s demo graphic crisis is only going to worsen in the years to come. SHRINKING WORKFORCE Japan has the lowest unemployment rate of all the Group of Seven economies, a bloc also comprising Canada, France, Germany, Italy, the United Kingdom, and the United States. The ratio of Japanese people of working age who are employed is at its highest since the 1960s, while that of job offers per applicant is near its all-time high of 1.6, achieved in 1963. Those figures are evidence of the worsening shortage of staff, a problem that affects every company in Japan. And predictions are that those shortages are going to become even more acute. Since the population began to contract in 2010, the total number of Japanese has fallen by about 1.3 million. The United Nations predicts that, by 2065, it will shrink by a
CONSULTANCY
further 28 million people, a 22-percent decline from the present figure. The population isn’t simply shrinking, it is aging rapidly. Since the turn of the century, the number of working-age Japanese has fallen by 13 percent. By 2040, more than 1 in 3 of all people in Japan will be more than 65 years of age—the highest proportion in the world.
REAL CHANGE Nicolas Tollie, head of Japan for Guidepoint Global, LLC, believes this sea change will have a major impact on employ ment opportunities here. “Up to now, internal compliance rules at most Japanese corporations did not allow employees to have side jobs,” he told The ACCJ Journal. “In addition, corporate culture and values mean that it is considered disloyal to have another job. THE PLAN Lifetime employment here means that you commit your entire Given this looming threat to the nation’s economic well-being, life to the company, and the company in return provides the government released an action plan in March 2017. It is employment security.” designed to reform the way in which people work, declaring However, a number of Japanese companies, such as a commitment to changes that will “enable every worker to SoftBank Group Corp., Nissan Motor Company, Ltd., and have the hope of a better future.” Rohto Pharmaceutical Co., Ltd., are introducing sweeping The plan states: “We will build a society employment reforms. And Kagome where everyone can choose various Co., Ltd. President Naoyuki Terada The government is work styles to build one’s own future. has said that his company will cut calling for companies to We will create various opportunities for working hours 10 percent and permit motivated people.” staff to take side jobs. permit their staff to have The document outlines a number of “I believe these sorts of changes side jobs or second jobs areas in which the government will seek make companies a more attractive reform, including making mid-career value proposition for employees, changes easier, encouraging flexibility in the job market, and and in turn companies gain access to external knowledge reducing the gap between regular and non-regular employees. and benchmarks through their employees’ interactions It was a completely new suggestion that caught the atten with the marketplace,” said Tollie. Guidepoint connects tion of many. Among its proposals, the government is calling clients with experts from a global network of specialists for companies to permit their staff to have side jobs or in any number of business fields, enabling them to make second jobs in addition to their main employment. better decisions. According to the Ministry of Health, Labour and Welfare, Guidepoint’s experts have other jobs, demonstrating the there are about 3.68 million people who want a second job benefit of permitting people with valuable skills to share but are unable to take one because more than 85 percent of their knowledge. “Our clients are the large corporates, buycompanies currently forbid employees to work elsewhere. side and sell-side analysts, private equity hedge funds, and In other countries, employers look more kindly on staff who consultants who are reinventing the world through strategy, share their working time—especially with startups, which corporate planning, mergers and acquisitions, due diligence, benefit from workers learning additional skills. and research and development activities. They are constantly
Active job openings-to-applicants ratio (S.A.) 1.60 1.50 1.40 1.30 1.20 1.10 1.00
Feb
Mar
Apr
May
Jun
Jul 2017
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
2018
SOURCE: MHLW EMPLOYMENT REFERRALS FOR GENERAL WORKERS
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president of Harmony Jinzai Inc. and vice-chair of the ACCJ Women in Business Committee
looking to speak with experts all over the world, and to do so within 24 hours,” Tollie said. “Millennials are now looking for workplaces with flexibility, where they are able to work while also engaging in other activities concurrently with their main jobs,” he added. “For workers, this enables them to fully commit to their main job at the same time as having the opportunity, for example, to go to a yoga class, take care of their children, or share knowledge or skills with another organization.” GLOBAL COMPETITION The need for Japanese companies to embrace this attitude towards work among young employees is even more critical given that those companies are going to be increasingly competing for top talent in a global market. If corporations in New York, London, Hong Kong, and Beijing are being flexible with their staff, Tollie said, then companies here need to do the same to stay competitive. Makiko Tachimori, president of Harmony Jinzai Inc. and vice-chair of the American Chamber of Commerce in Japan (ACCJ) Women in Business Committee, said the difference between what she sees today and what she witnessed starting out as one of a handful of women on the career track at a large securities company 30 years ago is huge. Sexual and power harassment were par for the course three decades ago and were considered completely normal, she said. And while simply making the workplace a happier and more comfortable environment is important, she said, Japan is at a critical point. “Large companies are unlikely to go bankrupt because there is a shortage of staff, but those only account for about 5 percent of the total in Japan,” she said, pointing to the recent announcement by The Bank of Tokyo-Mitsubishi UFJ that the company will shed 10,000 staff—fully 7 percent of its workforce—in the coming years, thanks to increased use of technology. “The remaining 95 percent are small or medium-sized enterprises, and they are the ones who are already feeling the impact of insufficient workers,” Tachimori explained. “It is clear that the government has taken this step of encouraging second jobs as one way to deal with that labor shortage and the need to share people’s skills,” she explained. “And women also can benefit if they look at second jobs as a new opportunity to sharpen their skills and then use that to broaden their career possibilities.”
CONSULTANCY
NICOLAS TOLLIE
Another benefit is that people at both companies are exposed to new ideas and knowledge. This serves to improve knowledge throughout Japan’s business world while smaller companies that would not otherwise be able to hire extremely capable staff on full-time contracts can now access those individuals. POTENTIAL PITFALLS There are, however, some negatives that must be overcome if the system of second jobs is to cement its place in corporate culture here, Tachimori admitted. One concern is how to protect company secrets and intellectual property. This is a concern shared by Jim Weisser, general manager of BroadCloud in Japan for Maryland-based Broadsoft and vice-chair of the ACCJ Venture Company Task Force. He said there have been substantial positive changes in the Japanese working environment, including the Cool Biz dress code campaign, a focus on work style reform (hatarakikata kaikaku), and an improved social status for entrepreneurs. But, he is less convinced that creating a new generation of job-sharing workers will have the benefits that the govern ment anticipates. “How is this supposed to work?” Weisser asked, wondering if employees could be prevented from also working for a company’s competitors. “I see more opportunities for produc tivity increases in the back office that everyone has been aware of for years.” Mike Alfant, a former ACCJ president who is CEO of technology consultancy Fusion Systems and an advisor to the ACCJ Venture Company Task Force agrees.
Group of Seven Unemployment Rate (2018) Canada 6.2% France 8.8% Germany 3.6% Italy 10.9% Japan 2.9% United Kingdom 4.4% United States 3.9% SOURCE: INTERNATIONAL MONETARY FUND
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general manager of BroadCloud in Japan for Maryland-based Broadsoft and vice-chair of the ACCJ Venture Company Task Force
CONSULTANCY
MIKE ALFANT
“There is definitely a shortage of employees in all fields right CHANGING WORLD now, but the impact at present is situational, because a lack of There’s no doubt that the concept will require adjustment for clerks in a convenience store obviously does not have the same companies in Japan accustomed to the traditional approach impact as a shortfall in executive directors with experience in of one company, one job. And, as Weisser and Alfant point mergers and acquisitions,” he said. “So, it is a strategic problem out, this approach may not be for everyone. But with lifetime and one that I think is going to take time to rectify.” employment becoming a thing of the past, workforce Complex problems require sophisticated answers, mobility and lifestyle flexibility are key to Japan’s future. he added, and encouraging companies to let their best As Tollie explained: “Our world is becoming increasingly staff assist business rivals is not a digital, with new technologies and Millennials are now sophisticated solution. business models leading, interacting Alfant, an entrepreneur who has looking for workplaces with, or competing with old ones to set up about 30 companies in Japan create ecosystem platforms. Incumbents with flexibility since first arriving in 1990, said, “It’s are investing massively to remain absolutely not something I would do at my relevant, but they cannot do it alone.” company, and I think it is a very short-sighted and counterAn example, he said, is automotive companies building productive policy. alliances to unleash the connected car of the future. Health “As a CEO, I want the full and complete attention of my folks care companies collaborating on clinical trials to cure diseases to be on Fusion Systems,” he said. “I do not want a conflict is another. This kind of information exchange benefits society of interests, a conflict of their attention, issues from other as a whole and—as long as existing company secrets are not companies to spill over from an outside entity into my office. violated—each organization can use its competitive advantage “And I would add that people already work hard enough to capitalize on the output of the collaboration. in Japan, so this policy would seem to run counter to the As he sees it, the government’s encouragement of second jobs government’s other policy of ensuring a work–life balance. is coming at the right time—a time when Japanese society is in Overall, I would say that this idea is fraught with problems.” need of new ways of working and exchanging knowledge. n
Key areas for expertise sharing in Japan according to Guidepoint
Energy
Healthcare
Regulation, Environmental sustainability
Digital health management
Solar power plants, Offshore wind market
Integrated care
IoT, Machine Learning, Robotics, Blockchain
Robot-assisted surgery
Financial Services
Automotive
Cryptocurrency
Connected cars
Digital mergers & acquisitions
Telematics
IPO, Private placement
Factory automation
Fintech and insurtech
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Apparel company Sanyo Shokai Ltd. suffered a crushing blow three years ago when it lost one of its main income sources: a contract to make and sell Burberry products in Japan. To recover, management cut payroll and shifted more resources to online sales. Then, last September, it instituted a program that reflects far broader changes now sweeping corporate Japan. Sanyo Shokai introduced flextime to boost productivity. Japan is infamous for long, exhausting workdays. There is a reason the Japanese language has a word meaning “death by overwork”—karoshi. But, in a survey by Deloitte Tohmatsu Consulting LLC conducted last year, 73 percent of companies said they had either implemented reforms or were in the process of doing so. Back in 2013, the ratio was only 30 percent. QUALITY OF LIFE Atsushi Kato, a 27-year-old who works in distribution at Sanyo Shokai, feels the difference. He is free to start later in the day when he knows he will have work to do at night. “I became more conscious of [managing] time after flextime was introduced, and of separating my work from private life,” Kato said. Now that he works less overtime, he cooks at home and enjoys shopping around for the best ingredients. “Dinners using fresh ingredients make me healthier and prepare me for the next day.” Deloitte’s poll found that the most common reforms involved limiting overtime or encouraging employees to use their paid vacation days. Some companies were also streamlining work itself, say, by omitting redundant procedures.
FLEXTIME Kicking Japan’s inefficient work habits By Akane Okutsu and Eri Sugiura
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One after another, Japanese businesses and institutions are creating management posts to enforce better working habits. Work reform is now very much in vogue, not only in the corporate sector but also in other fields plagued by excessive overtime, such as education and healthcare. Concern about Japan’s working culture is not new. Karoshi, which refers to suicides and illnesses caused by the stress of extreme overtime, has been considered a grave health issue for decades. In late 2012, the term “black company” became a buzzword for employers who exploit workers. And, in 2016, the suicide of a young employee at advertising agency Dentsu Inc. drew global attention. She had been putting in a staggering number of hours and faced relentless criticism from her boss, described as “power harassment.” TIME FOR CHANGE So, why are companies—and Prime Minister Shinzo Abe, who is pushing for work reforms—getting serious now? Munetomo Ando, a professor of economics at Nihon University, sees the country’s deepening labor shortage as the main reason. The jobs-to-applicants ratio in the fiscal year that ended in March hit the highest level since fiscal 1973. Under the circumstances, incremental wage increases are no longer enough to attract and retain quality workers. Ando suggested Japan’s traditional corporate practices, which include “ordering employees to work whenever and go wherever,” do not fit today’s realities. Often, employment contracts do not specify responsibilities, and companies frequently tell employees to relocate to another city or even overseas with little warning or consultation. The trade-off for workers, mostly men, was lifetime employment. But Ando said this structure, built in the highgrowth postwar days, is no longer the answer in an era when companies need to hire more women and seniors.
PARTNER CONTENT
Companies are increasingly understanding this. They also realize that simply granting more time off is not enough. The average Japanese worker receives 20 days of paid vacation each year—five more than in the United States and Singapore—but uses only half of them, according to a survey by Expedia Japan. Panasonic Corporation, which already allows employees to take two extra days of paid leave to care for elderly parents or attend school events with their children, has made it easier to actually use the days. Now, workers can take the time off on an hourly basis, as opposed to full or half days. Panasonic’s labor union was on board with the idea, since it gives workers flexibility. They can take an hour at the end of the day, for example, more often than they could take a whole day off. From management’s perspective, the system helps reduce fluctuations in the number of people working on a given day, which is especially important in manufacturing. Kazuhiko Ikawa, chief manager of Panasonic’s office for a better workstyle, said this will “allow diverse workers to participate actively.”
Work Reform at Japanese Companies (% of companies) 70 Currently implementing
60 50 40 30
Feel the need but yet to start
20
10 PRODUCTIVE CURE The hope is that work reforms will solve the country’s productivity problem, too. 0 2013 Japan’s labor productivity, as measured in US dollars per hour, was $46 in 2016. That was only about two-thirds the figure in the United States and good enough for only 20th place among the 35 members of the Organisation for Economic Co-operation and Development. “Work reform will help to increase The jobs-to-applicants ratio Japan’s real GDP growth rate by in the fiscal year that ended 0.5 to 1.1 percentage points,” said Hajime Takata, senior managing in March hit the highest level executive officer at Mizuho Research since fiscal 1973. Institute Ltd. Allowing a wider
Already done Feel no need 2017
SOURCE: SURVEY BY DELOITTE TOHMATSU CONSULTING
range of work styles and supporting the participation of women and seniors could help ease the strain on the economy from the aging and declining population. Takata conceded that it would take more to maintain continuous economic growth of 2 percent—boosting the birth rate or capitalizing on advanced technology. But on the bright side, he said, this will be remembered as the time Japan’s government, companies, and employees all recognized the importance of work reform. ONGOING DEBATE The government, for its part, is facing an uphill battle. A labor reform bill, which Abe has touted as the most important legislation in this year’s regular parliament session, came up for debate in the lower house on April 27. Opposition parties initially boycotted the discussion, insisting Finance Minister Taro Aso should resign over scandals at the ministry. They agreed to stop stalling and ended the 18-day boycott on May 8, but now the schedule is tight, with the session to end on June 20. The reform package includes a cap on overtime at 720 hours per year and a requirement that companies set mandatory intervals between shifts. But the bill was watered down after Abe scrapped an expansion of the discretionary labor system. The system would have allowed certain types of employees to be paid for a predetermined number of hours regardless of how long they actually work. The government argued that expanding the range of applicable fields would create
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PARTNER CONTENT
more flexibility to accommodate different work styles and potentially reduce hours. But the proposal drew criticism after the government used flawed data to support it.
Annual Paid Vacation Actually Taken by Employees Hong Kong France
REAL CHANGE Brazil Political battles aside, the new corporate Singapore mindset is starting to have positive US ripple effects. Italy Travel agency JTB Corporation estimates India a record 24.4 million people traveled during South Korea this year’s Golden Week holidays, from late April to early May. Total spending on trips Japan increased 2.8 percent year on year, to top (%) 0 20 40 60 80 100 ¥1 trillion ($9.18 billion). A pre-holiday survey by the agency found that 11 percent SOURCE: SEPTEMBER 2017 EXPEDIA JAPAN SURVEY of respondents had indicated that they were likely to take more time off over this year’s Golden Week employer does not compensate for overtime. “The company compared with last year. says it is difficult to set common working standards since we Artificial intelligence (AI), meanwhile, is assisting all deal with different devices,” she said. Japan’s drive for higher labor productivity. Companies are As a result, she said she is losing her passion for the job. embracing Traina, an AI system from Nomura Research “My boss probably thinks I won’t leave because of my age, Institute that answers customer or but I’m motivated to get a new job Japan’s traditional employee inquiries by phone or online elsewhere, or even start my own chat. This helps employers make more business. I have enough experience in corporate practices . . . efficient use of human resources by this sector.” do not fit today’s realities. moving workers from call centers to Businesses face a need to invest not other divisions. only in automation and information The impact has shown up on Nomura Research’s balance systems but in people. And Nihon University’s Ando warned sheet. Its operating profit for fiscal 2017 rose 11.3 percent to that work reforms can dent productivity over the short term. ¥65 billion. Companies that hire more inexperienced women and seniors, for instance, will have to give them time to settle in and learn. Ando believes that overtime and productivity will improve THE ROAD AHEAD in V-shape fashion, getting worse before they get better. But if The job of national reform is far from finished, though. corporate Japan sticks with it, employers stand to reap benefits— Working fewer hours does not always equate to a lighter and even save lives. n workload. Some employees may feel exploited when companies clumsily enforce changes in the name of efficiency. A 55-year-old consultant on regulatory strategy for © 2018 Nikkei Inc. Nikkei Asian Review is published medical devices, who asked not to be named, said she and by Nikkei Inc. All rights reserved. her colleagues struggle to manage their own hours while her
Japan’s Labor Productivity Index A Late 2012 “Black company” becomes buzzword.
B 2014 Fast-food chain Sukiya stops night operations at more than 1,000 restaurants due to staffing issues.
C 2016 Prime Minister Shinzo Abe creates new ministerial post to oversee labor reform; suicide of woman working for advertising agency Dentsu draws national attention.
104 102 100
A
B
C
2015 = 100 98
Service
Manufacturing 96 2010
’11
’12
’13
’14
’15
’16
’17
SOURCE: JAPAN PRODUCTIVITY CENTER
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BUYER BEWARE Why Japanese investors and expats mostly choose Manila By Brandi Goode
When Eri Tamura moved to Manila in 2015, she was surprised at how international and Japanfriendly the Philippines capital was. Today, ramen shops are nearly as ubiquitous as Starbucks, and Uniqlo is considered high-street fashion. Attracted by a large English-speaking workforce, favorable demographics, and rising gross domestic product (GDP), the Philippines has become a hotspot for foreign investment—and Japan is taking note.
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“Generally speaking, many Japanese have viewed the Philippines as underdeveloped. We were surprised to see the prosperous side of this country, with people living the same as in other first-world countries,” Tamura told The ACCJ Journal. “There’s a large Japanese community that is growing each year. I come to like living here more and more.” Japan consistently ranks among the top foreign economies investing in the Philippines, along with the United States, Singapore, and, most recently, China. Japan committed the highest share (24 percent) of total approved foreign investments in the fourth quarter of 2017, at 5.2 billion pesos (¥10.9 billion), followed by the United States with 3.2 billion pesos (¥6.7 billion). Data from the Central Bank of the Philippines also shows that real estate activities came in second during the quarter for foreign investment commitments, just behind manufacturing.
REAL ESTATE
CULTURE CONNECTION Federal Land, Inc. is one Philippines real estate developer with close Japanese ties. Its parent company, GT Capital Holdings, was chosen as Toyota’s local partner some 30 years ago, and Federal Land counts Orix Corporation, Nomura Real Estate Development Co. Ltd., and Isetan Mitsukoshi Holdings Ltd. among its largest international partners. The developer is currently building a Mitsukoshi depart ment store in the Bonifacio Global City (BGC) district of Metro Manila, an upscale neighborhood with many foreign residents and businesses. BGC is home to the Manila Japanese School, as well as many embassies and top international schools. Residences are available for purchase above Mitsukoshi, with sales to begin by mid-2018. Cathy Casares-Ko, executive vice president for business management at Federal Land, told The ACCJ Journal, “When we started this residential development, the question our Japanese sellers asked was not, ‘How much will units cost?’ but rather, ‘How many can you give us?’” Cupcake shop in Bonifacio Global City's Serendra Park The developer is working closely with its Japanese partners to build units that Tamura views the Filipino and Japan consistently ranks appeal to Japanese buyers, with many of Japanese cultures—though distinct— the same features found in Tokyo or Osaka among the top foreign as harmonious. “I hear that Japanese apartments. Open planning and hidden managers work well with Filipino economies investing in storage, for example, make even small workers, who seem to respect our the Philippines units appear spacious. Many of Federal country and culture,” she said. Land’s residential projects are in the According to a 2016 survey by the BGC district, though developments are planned across Metro Japan External Trade Organization, the top five reasons given Manila. The company is also adapting Japanese construction by Japanese companies for investing in the Philippines are: technology to protect buildings from natural disasters. n future growth potential of the local market Though foreigners are generally prohibited from owning n inexpensive labor land outright in the Philippines, they can buy condominium n current size of the local market units. As long as ownership by non-natives in a condominium n availability of qualified human resources project does not exceed 40 percent, any nationality is n the country’s potential as a supply base for assemblers welcome to buy. “Our Japanese investors are seeing great progress here,” Casares-Ko said. “Plus, the Japanese government has recently THE BOTTOM LINE relaxed visa requirements, so now more Filipinos can travel With a population of more than 100 million, there are indeed easily to Japan. There is more exposure to the culture now plenty of human resources in the Philippines—and most of than ever before.” them are young. In contrast to Japan, which has a median
Top Three Investors in the Philippines Total approved foreign investments in Q4 2017.
JAPAN
5.2 billion pesos (¥10.9 billion)
US
3.2 billion pesos (¥6.7 billion)
SINGAPORE
1.8 billion pesos (¥3.7 billion)
SOURCE: PHILIPPINE STATISTICS AUTHORITY
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Shops at Serendra, a commercial plaza outside one of Ayala‘s major residential projects in Bonifacio Global City.
age of 46.5, the Philippines boasts a median age of just 24. The healthcare sector is strong, which attracts retirees, and it is not difficult to obtain a long-term visa—there’s a Special Resident Retiree’s Visa category with fairly low financial obligations. Casares-Ko notes that many Japanese who have worked for companies such as Fuijtsu Ltd. or Toyota Motor Corporation in the Philippines opt to retire there, drawn to the Filipino hospitality and the “pampering” style of treatment common in the country’s upper-class facilities. Pampering aside, the base motivation for most real estate investors in the Philippines is financial.
Japanese Investors signed letter of intent in 2017 Densan System Company Ltd. Hitachi Asia Hitachi Ltd. Isetan Mitsukoshi Holdings Ltd. Itochu Corporation Japan Tobacco Incorporated Lawson Incorporated List Company, Ltd. Marubeni Corporation Ministop Company, Ltd. Nomura Real Estate Development Company, Ltd. Subic Smart Community Corporation Sumitomo Metal Mining Company, Ltd. Taiheiyo Cement Corporation Tokyo Gas Company, Ltd. Tsuneishi Shipbuilding Company, Ltd. Ubicom Holdings, Incorporated Yamato Kogyo (In alphabetical order)
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Anna Ramos is the marketing head for Ayala Land Inter national Sales, Inc., one of the country’s largest real estate developers. While US nationals comprise its largest foreign client base, Japan comes in third. Ayala Land has done roadshows in Tokyo for several years now, and just completed its first Osaka roadshow in May. “The first and most important question is always about returns. When we discuss Philippines real estate with the Japanese, they always want to see the financials. Capital appreciation and rental yield are strong selling points for real estate here,” Ramos told The ACCJ Journal. Eva Marzan, president of Infinity Realty, also emphasizes rental yield as a leading draw for investors. Marzan’s client base is largely foreign, and she focuses on residential properties in high-end areas of Metro Manila such as BGC, Makati, and Rockwell. When asked why her investors choose the Philippines, she said: “First, they see the growth and potential of the country; there’s still a lot of room for improvement, and it’s always best to invest in a growing economy. Second, they can buy luxury properties that are still affordable compared to other prime locations for investments abroad—especially compared with European countries and the United States. And the yield is fast here as long as you buy in the right location.” “Plus, the fact that all contracts are in English is a huge plus, as it’s easier for buyers to understand yields, ROI, etc.,” she added. Data from a 2017 World Bank report shows a 6.7-percent growth rate for the Philippines’ GDP, just behind regional competitors China (6.9 percent) and Vietnam (6.8 percent). Japan’s GDP rose just 1.9 percent last year. Despite currency fluctuations surrounding the Philippine peso, the country receives about 10 percent of its GDP from overseas foreign workers, which helps stabilize and boost the economy. U.S. News & World Report recently ranked the Philippines “the best country to invest in,” noting the strong and steady inflow of foreign direct investment. “We keep asking, when will the bubble burst? But things have been quite steady,” Casares-Ko said. “If anything, investors have become more choosy with the developments they invest in.”
BUYER BEWARE There are some less-than-rosy conditions to bear in mind when considering a real estate investment in the Philippines. One major drawback is the country’s high tax rate, which is capped at one percent for properties located within Metro Manila and two percent for those outside the capital. For nonresidents, rental income is taxed at a flat rate of 25 percent, with no deductions or allowances permitted if the owner resides abroad for most of the year. However, the current government administration, led by President Rodrigo Duterte since June 2016, has already passed some tax reforms and rumors suggest more may be on the way. Though factors such as inadequate infrastructure, instability, and corruption continue to sway investments in the Philippines, in general the current government has signaled a willingness to open its doors to more foreign investors. On the heels of Duterte’s October 2017 visit to Tokyo, 20 Japanese companies signed letters of intent indicating their interest in investing in the Philippines. Most signatories were Japanese companies working with local Filipino partners or government agencies, such as Marubeni Corporation and the Department of Trade and Industry of the Republic of the Philippines.
REAL ESTATE
A two-bedroom condo in the prime residential and business districts of Makati or BGC, for example, costs 8–30 million pesos (¥16–63 million). The Rockwell area is slightly more expensive at 15–38 million pesos (¥31–79 million). According to Marzan, roughly 90 percent of foreign buyers pay cash out right for real estate investments, though financing is available for long-term residents.
US INTEREST Companies from the United States also continue to invest and expand in the country due to a shared history, strong cultural proximity, and the Philippines’ strategic location in the dynamic Association of Southeast Asian Nations (ASEAN) region. Two of the country’s largest foreign employers, Intel Corporation and Texas Instruments Inc., are US-owned and operated. Trump Towers and Westin Residences, both luxury US residential interests, have also built properties in Manila, signaling Western confidence in the country’s future. While neither project is complete, a representative from the Trump Towers sales office said they were no longer actively showing apartments in the building, as most units were presold to buyers from countries such as Japan and Singapore, or to Filipinos living and working abroad. Businesses from across the globe remain bullish on the Philippines. The 2018 ASEAN Business Outlook Survey, published by the United States Chamber of Commerce and the American Chamber of Commerce in Singapore, indicates that 70 percent of respondents in the American Chamber of Commerce of the Philippines (AmCham Philippines) are planning business expansions this year—higher than the overall ASEAN average of 62 percent. Ebb Hinchliffe, executive director of AmCham Philippines, feels the time is right to invest in the country. “Although there are a number of challenges and problems, the efforts of the Philippines’ administration to pass wide-reaching tax reforms and overcome the infrastructure deficit should create lucrative opportunities to tap into demand from the growing middle class,” he said. n
Capital appreciation and rental yield are strong selling points for real estate [in the Philippines].
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MINDFUL CARE Changing the perception of mental health in Japan
Japan has long been known as a place where discussion of mental health is taboo. But this is beginning to change. The number of mental health professionals—including clinical psychologists— is growing, care is expanding to a wider range of issues, and environments for treatment are becoming more comfortable. LONG VIEW It takes time for societal views to evolve, and Andrew Grimes is a clinical psychologist who has witnessed this firsthand. He first came to Japan 32 years ago and began working as an English teacher. One of his students had two children with mental disabilities, and he volunteered to help them. This decision would lead to a career in healthcare and the establishment of his own business. Inspired by the work of his mentor, Dr. Noboru Hozumi, Grimes opened Tokyo Counseling Services (TCS) in 1999. “At first it was just me, an answering machine, and three empty rooms,” he laughed. But things grew, and, in 2003, he became the only non-Japanese mental health professional to be awarded qual ification as a registered psychotherapist in Japan by the Japanese Federation for Psychotherapy. And in autumn 2007, he opened TCS’s first purpose-designed counseling center in the heart of Shimokitazawa, a popular neighborhood in Tokyo’s Setagaya Ward. Today, TCS has 20 counselors and offers services seven days a week, logging about 100 case hours during that period. Grimes recalls some of the initial difficulties he faced when starting the center, admitting that for the first two or three years it was difficult to build a client base. “This was simply because the numbers did not generate enough income to cover the running of the center,” he said. Using borrowed money, he was able to bring the business towards the black. But the 2008 Lehman Shock and the Great East Japan Earthquake and Tsunami of March 2011 squashed any dreams of quick, continued growth. Eight years later, Grimes feels that the business is finally stable. “We are very secure now, and we are getting new clients weekly. I’m feeling quite satisfied now that I have achieved my goals to have a functioning, full counseling center.” Another obstacle he faced when opening the clinic was the perception Japanese people had of him and his counselors. “People had an idea that somehow we were English teachers,” he said. “The older generations were very much of the mindset that a non-Japanese person could not counsel a Japanese person.” But that perception is gone, and the center now has counselors who work in English, Japanese, French, German, Korean, and Mandarin.
By Maxine Cheyney
SOCIAL SHIFT The view of mental health in Japanese society was one of the highest hurdles in years past. Grimes explained that many saw counseling as “a place where crazy people go.” This has changed over the past decade. “Now, it’s much more acceptable in society to say that you are seeing a psychiatrist or counseling center,” he said.
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HEALTH
One reason for the growth in counseling needs among youth is online activity.
influence on the child and what kind of job they would go for is very strong,” Grimes said. “There are more and more young people who do not want lifetime employment. “I want to be optimistic that the growth of problems can be matched by the growth in the provision of professional mental healthcare. For example, at the current time, there are more than 30,000 clinical psychologists in Japan. That does surprise people.” In addition to these specialists, there are more than 100,000 mental healthcare professionals in the Kanto and Kansai regions. “There has got to be a shift away from the old mentality,” he said. “People must be able to go for mental healthcare without it affecting the image they have at work.” The situation is beginning to change. Employment assistance programs (EAPs) are rising, and these companies are forming contracts with large corporations. However, Grimes added, this very much depends on the company. “The more liberal companies are taking onboard EAPs, or simply just encouraging employees to seek help, and the human resources department is very instrumental in that.”
The range of recognized disorders and treatments is also growing. Post-traumatic stress disorder (PTSD) is just one such mental health issue that is finally being acknowledged and treated. Others include depression, bipolar disorder, and schizophrenia. “Primarily, we are seeing people with depression, PTSD, social anxiety disorder, and panic attacks,” Grimes said. “And we have increased couples counseling quite dramatically. At least 20 percent of our clients are couples.” Grimes emphasized that, despite some naysayers, mental healthcare services in Japan have undergone huge changes, and the stigma of going to a psychiatric clinic or a counseling center has lessened. DIGITAL DIVIDE The majority of TCS’s patients are in their forties to sixties, but Grimes is seeing more and more young people seeking help. This, he says, is a major change. One reason for the growth in counseling needs among youth, he believes, is online activity. “I think there is an influence of social media, that people are forming friendships on Facebook, Twitter, and various platforms, and it’s causing anxiety because people are not going out to meet as much. Therefore, they are not developing their social skills and are experiencing high anxiety. As a result, panic attacks and depression are on the increase.” Many of the young patients at TCS suffer from depression— and it almost always stems from life online. “It’s a very sensitive medium. You put up personal things about yourself and people write nasty comments. It is easy to be vilified,” Grimes said. He is hopeful that the tide will turn, and there are now professional associations and societies that are researching and addressing the effects of social media. CULTURAL CONCERN Another cause of stress for young people in Japan is the pressure to find jobs. “We’ve come to a schism whereby the parents’
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Suicide Rate among select Organisation for Economic Co-operation and Development members (per 100,000 people) Australia
12.2
France
14.3
Germany
10.8
Japan
17.6
South Korea Mexico
28.7 5.5
Norway Spain
10.5 7.6
Sweden United Kingdom United States
11.7 7.5 13.5
SOURCE: ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
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HEALTH
APRICOT Despite the improved situation in many regions—specifically in Tokyo—mental healthcare professionals and facilities are still lacking in Tohoku and countryside areas. Grimes founded the 100-percent volunteer project Apricot (Allied Psychotherapy Relief Initiative for the Children of Tohoku) in 2012 to act as a conduit to gather funds to enable mental healthcare professionals to provide assistance to the region. Non-profit organization (NPO) status was granted by the Tokyo Metropolitan Government in October 2014. “Having to overcome a lack of knowledge about mental healthcare and how to use educational programs with local community nurses and teachers is the main thing that Apricot and other NPOs struggle with,” Grimes said. After the 2011 earthquake, as international aid was reallocated, Grimes realized there was a pressing need in the region. In the wake of these tragedies, more than 71,000 children and A working dog at an Apricot picnic in Tanohata, Iwate Prefecture. mothers were evacuated from Fukushima Prefecture’s eastern districts, and government surveys found that 1 in 3 of these children suffered mental He noted that, as seven years have now People must be able to health issues following the experience. passed since the disasters, it is becoming go for mental healthcare “I decided the best thing we could do more and more difficult to get donations. is gather as much funding and try to The public does not realize that, when it without it affecting the encourage people to have more corporate comes to mental health, the immediate image they have at work. social responsibility (CSR),” he said. aftermath is not the only concern. One of the All funds raised by Apricot go to challenges that the charity and mental health carefully vetted organizations such as the disaster relief professionals face is ensuring continued care for those affected mental health committees of the Japan Society of Certified in the area. And that takes money. Clinical Psychologists and Fukushima Society of Certified Clinical Psychologists. But getting sponsorship and help from THE FUTURE Japanese companies has been difficult. Many are only slowly While corporate support has been sparse, there are individuals beginning to embrace CSR. who have made great contributions to the charity. Grimes They have had some success with the likes of the Embassy names one man who is planning to handcycle around Japan to of Belgium in Japan, where they held an event at which raise money, and he hopes that there will be more like him. Japanese and global companies set up stalls to sell their For Tokyo Counseling Services, the business has room to goods. Profits were donated to Apricot. grow as mental health issues are increasingly acknowledged Although the issue has faded from the news, the work in Japan. Grimes hopes to expand to five rooms and maintain goes on. Grimes continues to promote the NPO and find financial stability. sponsorship. “What I am trying to do through LinkedIn is “We have got to a level of busyness that means, one day, we keep promoting CSR, and to try and get sponsorship from are going to have to tell somebody that we can’t help them; and large corporations.” I don’t ever want to have to say that to someone.” n
SPONSORED CONTENT
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3. Relationship focused One of the most gratifying parts of this job is the rewarding feeling of closing a deal you’ve worked hard on for three solid months, and, at the same time, meeting the requirements of candidate and client while developing long-term relation ships with both. After all, what is more significant than a lifechanging opportunity such as finding a new job? Want to learn more? As the bilingual arm of the Japanese recruitment giant Recruit Group, RGF Professional Recruitment is a highly respected recruitment agency that provides opportunities to bilingual candidates and global companies. We have openings for those interested in working with us in this lucrative and dynamic industry. Please visit www.rgf-professional.jp or contact Sarah Onishi at sarahonishi@rgf-professional.com for a confidential chat today! n
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Japan policy updates translated from Keizaikai magazine
CABINET OFFICE
FIRST DEMAND SURPLUS IN NINE YEARS BOOSTS ABENOMICS Japan saw a gap between supply and demand of 0.4 percent in 2017, leading the Cabinet Office to state that demand now exceeds supply. It is the first time this has occurred since the Lehman Shock of 2008. Main factors in the recovery include a decline in the value of the yen, improved corporate revenues owing to increased exports, and investments in production facilities—all pegged as results of Prime Minister Shinzo Abe’s policies known as Abenomics. The latest calculation was applied to the final quarter of 2017 and was incorpo rated into the revised GDP figures for the entire year. Based on these figures, the actual GDP for 2017 was ¥531 trillion and the latent GDP was ¥529 trillion. This shows a minus-0.3-percent gap between supply and demand in 2016. The year-on-year increase of seven-tenths of a percentage point resulted in a surplus of 0.4 percent for last year. The impact of the Lehman Shock caused the supply–demand gap to plummet to minus 5.1 percent in 2009, and negative performance continued year after year. Following the start of the second Abe cabinet in December 2012, fiscal deregulation resulted in a decline in the value of the yen and an increase in stock market prices, spurring exports and helping business performance improve. In the wake of these changes, individual consumption as well as investment in plant and equipment also improved. The gap continued to shrink and is seen as evidence that the Japanese economy has achieved recovery. Nevertheless, the latent growth ratio has remained low, at about 1 percent, due to factors such as the low birthrate. As a result, the speed of economic expansion has
slowed. Urgent measures will be needed to raise the latent growth ratio, supplementing population decline through such steps as reinforcing supply capabilities through growth strategies and workstyle reforms. MINISTRY OF LAND, INFRASTRUCTURE, TRANSPORT AND TOURISM
PORT FACILITIES TO BENEFIT FROM FISHING TOURISM The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has clarified guidelines for the building of breakwaters, seawalls, and other fishingrelated infrastructure. Fishing is a major form of leisure in Japan and abroad, and plans are in the works to improve docking facilities to attract more cruise ships to Japanese ports. The aim is to make the country more appealing to visitors interested in marine activities, including sport fishing. Efforts to develop fishing as a tourist resource have been under way for some time on a regional basis, and port cities view the sport as a “second catch,” or added benefit, when cruise ships stop over. As of June 2017, Japan had 933 seaports, but only 50 offered facilities for sport fishing. The small number is due in part to
legal restrictions, such as laws banning ships from approaching seawalls for the purpose of fishing. Locally imposed safety restrictions to prevent accidents among fishers also have a limiting effect. The Japanese government has set a target of 40 million inbound visitors per year by 2020, and—as 123 ports welcomed cruises from abroad during 2016—it has been determined that the improvement of fishing facilities at seaports will help the country reach this goal. MLIT, in conjunction with the Japan Sportfishing Foundation, has erected fences to prevent accidental falls and has also installed ladders at Aomori and Akita Ports. By this summer, the ministry is also expected to make adjustments to open up breakwaters and seawalls to fishermen. Workshops and other fishingrelated events are being planned at 35 ports around the nation for FY2018. One example of the success this can bring is Atami Port in Shizuoka Prefecture. Following the erection of a safety fence in 2006, the port has collaborated with local eateries, hot springs, railways, and travel agencies to develop projects that include fishing activities. As a result, over a period of about a decade, the number of fisher men utilizing the seawall has tripled and revenues at local businesses have risen by some 20 percent. n
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EXCELLENCE IN RECRUITING Awards recognize industry’s best By Alec Jordan
Recruiters have significant influence on Japan’s employment landscape. They help talented workers realize their potential and assist companies as they work to build and maintaining the best possible team. Recruiters can also be helpful when it comes to diversity and inclusion, putting them at the forefront of changing dynamics in the workplace. So, it only makes sense that the most impressive achievements in the industry should be recognized—and that’s where the Recruitment International (RI) Awards come in. This year’s RI Awards will be held at Tokyo American Club on June 29, and anticipation is running high. The prestigious annual honors recognize the best recruiting companies and individuals in 18 categories, from recruiting in specific industries to the best corporate social responsibility. This is the first year the RI Awards is partnering with Tokyo-based bilingual digital content creation and communications agency Custom Media, publisher of The ACCJ Journal, adding another level of polish to the black-tie gala.
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THE ACCJ JOURNAL
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INFLUENCE As David Head, director of the RI Awards explained, recruiting firms play a crucial role in identifying—and bringing out—the best in the Japanese business world. “These are the companies that specialize in finding the talent and people that keep Japan working. This can range from general worker dispatch and skilled temporary employees right through to senior C-level placements by professional recruitment companies and executive search firms.” This is what inspired Robert Heldt, president and cofounder of Custom Media, to partner with the RI Awards. “In Japan, the workforce is very conservative; people don’t switch jobs that often. The trend is changing, so I think that recruiters play a vital role in helping educate the market,” he said. “As a creative communications agency that works with recruiters on a regular basis, we see the efforts that they put in; so, we feel a synergy with what they are doing to help drive change in employment.” BROAD FIELD As Head points out, two of the things that make these awards stand out is their judging panel comprising recruitment industry experts, and the international nature of the awards, which are held in Australia, China, and the United Kingdom. The RI Awards, he said, is the biggest global recognition program for the industry.
RI AWARDS
Companies are encouraged to nominate themselves—as well as their most successful recruiters—for consideration, and entries have been streaming in steadily since the nomination period began in May, according to Head. By the June 6 deadline, he hopes to have fielded nominations from at least 40 of Japan’s top recruiting companies, for a total of about 100 entries. The RI team selected their wide range of award cate gories for their real-world impact and the fact that these awards confer a true advantage to the individuals and companies that win. They also provide teams with something they can be proud of. As Head points out: “We carefully choose the categories for the awards so that they bring in real tangible benefits for the companies that enter. The sector is highly competitive, so there is a real advantage to being able to say you have won an RI Award. Also, you should never underestimate the effect that winning has on the morale of your staff. Even if you don’t win, you are showing them how much you value and appreciate the work they do just by entering.” Heldt cited the award for diversity and inclusion as being particularly important in Japan, given the governmental mandate to create more diverse workplaces. “Diversity and inclusion is a huge area. Japan has ambitious goals when it comes to diversity and inclusion, and I think that these recruiters are definitely a key part of reaching them. Being
recognized by the RI Awards helps recruiters highlight achievements in this area, and that helps them drive change more actively.” BRAGGING RIGHTS As the RI Awards has developed, the high esteem to which they are held not only gives winners significant bragging rights, it also helps them gain prominent position in the marketplace. “The unique purple-R trophy has become an iconic accolade all over the world,” Head explained. “For the companies that win, it is a great opportunity to use this kudos to position themselves as a market leader. It is not easy to win an award—in fact, getting shortlisted is becoming harder and harder as the program expands. It is this level of difficulty that makes the RI Awards so widely cherished and sought after.” As Heldt sees it, the annual nature of the competition also pushes recruiting companies to excel year after year. “It helps you keep on your game. It’s like any sport: you’ve got to win every year. It’s about making sure that you’re delivering the best for your customers and for your team, and having that passion to excel. It helps you—and the leadership of your company— strive for something bigger.” n Nomination deadline: JUNE 6, 2018
www.recruitment-international.sg/events
These are the companies that specialize in finding the talent and people that keep Japan working.
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The ACCJ thanks its
Corporate Sustaining Member companies Their extensive participation provides a cornerstone in the chamber’s efforts to promote a better business climate in Japan. Information as of May 21, 2018.
3M Japan Limited
Federal Express Japan G.K.
Morgan, Lewis, & Bockius LLP
Abbott Laboratories/ Abbott Japan Co., Ltd.
Freshfields Bruckhaus Deringer Tokyo
Morgan Stanley Japan Holdings Co., Ltd.
AbbVie G.K.
GE Japan Inc.
MSD K.K.
Adobe Systems Co., Ltd.
Gilead Sciences K.K.
Naigai Industries, Inc.
Aflac
Goldman Sachs Japan Co., Ltd.
AIG Companies in Japan
Google G.K.
Nanzan Gakuen (Nanzan School Corporation)
Amazon Japan G.K.
GR Japan K.K.
Northrop Grumman Japan
Amway Japan G.K.
H&R Consultants K.K.
Asia Strategy: Business Intelligence, Public Policy, Advocacy
Hard Rock Japan LLC
NYU School of Professional Studies Tokyo
AstraZeneca K.K. Bayer Yakuhin, Ltd.
Hilton
Procter & Gamble Japan K.K.
Becton Dickinson Japan
The Howard Hughes Corporation
Prudential Financial, Inc.
Bloomberg L.P.
IBM Japan, Ltd.
Boeing Japan K.K.
IHG ANA Hotels Group Japan
Broadsoft Japan K.K.
Intel K.K.
Caesars Entertainment Japan
IQVIA
Catalyst
Johnson & Johnson Family of Companies
Robert Walters Japan K.K.
KPMG
SanDisk Limited
Lenovo Japan
Squire Patton Boggs
Cisco Systems G.K.
Lockheed Martin
State Street
Citigroup
Mastercard Japan K.K.
Steelcase Japan K.K.
Coca-Cola (Japan) Co., Ltd.
McDonald's Company (Japan), Ltd.
Teijin Limited
Caterpillar Chevron International Gas Inc. Japan Branch
Colt Technology Services Co., Ltd. Cummins Japan Ltd. Deloitte Touche Tohmatsu LLC Delta Air Lines, Inc.
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Oak Lawn Marketing, Inc.
Heidrick & Struggles Japan Godo Kaisha
McGill Japan McKinsey & Company, Inc. Japan
Ogilvy & Mather (Japan) GK
PwC Japan QUALCOMM JAPAN Inc. Randstad K.K. Relansa, Inc.
Thomson Reuters Japan KK Uber Japan Co., Ltd. United Airlines, Inc. Visa Worldwide (Japan) Co., Ltd.
Deutsche Bank Group
Merrill Lynch Japan Securities Co., Ltd.
Dow Chemical Japan Ltd.
MetLife
Eli Lilly Japan K.K.
MGM Resorts Japan LLC
The Walt Disney Company (Japan) Ltd.
en world Japan
Mizuho Financial Group, Inc.
White & Case LLP
EY Japan
Monex Group, Inc.
Zimmer Biomet G.K.
THE ACCJ JOURNAL
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VMware Japan K.K.
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